Usage of bitcoin cryptocurrency in international settlements

Abstract

The article covers the analysis of Bitcoin usage opportunities in international settlements. Although the frequencies of Bitcoin usage for daily payments have significantly increased, imperfections of the legal framework still create the barriers to treat this cryptocurrency as an alternative to fiat currencies that are employed for settlements all over the world. Considering its legal framework, Germany can be treated as the country, most advanced in the area of Bitcoin usage regulation: business people, who operate in the territory of the country, or those who serve German consumers without registration of their businesses in Germany are obliged to obtain the licence (authorisation) from German Federal Financial Supervisory Agency (GFFSA). Provision of financial services without GFFSA licence is considered as law violation with imposed fines or imprisonment. The results of the research propose that, due to the small number of the locations, where settlements in Bitcoins are available, treatment of Bitcoin as a criminal currency (Russia, China) as well as poor measures of consumer protection, Bitcoin can be treated only as an alternative to traditional measures of settlement, but not as a substitute to them.